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Barring a few lots from the upper Sindh ginneries, which were traded around Rs5,100 to 5,300 per maund, others were sold below Rs4,000 because of inferior quality. - File photo

KARACHI: Cotton market on Tuesday remained under pressure on renewed selling by ginners amid a briskly traded session at falling prices.

Although official spot rates were lowered by another Rs100 per maund, bulk of business in the ready section was done at an average rate of Rs5,500.

Some of the fine lots from the southern Punjab ginneries were traded around Rs5,700 to 5,750.

Market sources said limit-fall in the New York cotton futures, which had dropped by about 10 cents during the last couple of sessions have a direct negative bearing on the local market and any further fall below 90 cents per lb may further destabilise the local price line.

Both the ruling December and forward March contracts were quoted lower by 4.00 and 2.86 cents per lb at 90.81 and 90.41 cents per lb.

Barring a few lots from the upper Sindh ginneries, which were traded around Rs5,100 to 5,300 per maund, others were sold below Rs4,000 because of inferior quality.

Floor brokers said ginners, notably those holding long positions, were said to be a bit worried over falling prices and some of their weaker links have joined them.

They said news from the foreign markets are not that encouraging followed by speculative selling by leading speculators operating on the New York futures market but local fundamentals tell a different story, which point out to a normal activity sans panic.

However, an air of optimism prevails among spinners and mills as was reflected by massive buying both at the decline and the rise to balance their inventories purchased above Rs6,000 per maund.

The following are some of the notable deals reported by the Karachi Brokers Forum on Tuesday:

SINDH TYPE: 2,000 bales each Khairpur and upper Sindh at Rs5,100 to 5,400 and 400 bales, Mirpurkhas at Rs3,700.